Following their purchase of PointsBet in the US, Fanatics are reportedly readying moves to launch in Michigan. Such a move may not take place until next year, with the company’s promotion in the Great Lakes State pointing towards a 2024 start date.
Online casino and sports betting activity in Michigan is going well, and any brand would be looking to jump on the bandwagon in the region, with revenue numbers continuing to soar across 2023.
Online casino in Michigan brought in a total revenue of over $1.09 billion up to July 2023, which is a marked increase on the numbers for 2022, which rose to $883 million for the same period, representing a sizable uptick.
Talk of a move for Fanatics into Michigan was commented on by PlayMichigan, with the operator stating;
“Fanatics Betting & Gaming is building an online and retail (physical location) sports betting (“Sportsbook”) and online casino (“iGaming”) real-money wagering platform. Fanatics Betting & Gaming launched its first retail Sportsbook in Maryland in January 2023, and in May 2023, launched the beta version of its mobile Sportsbook in Tennessee and Ohio. Fanatics intends to launch and operate its Sportsbook and iGaming platform in additional states in 2023.”
In June, PointsBet approved the decision to sell its US assets to Fanatics when they upped their original $150 million bid to $225 million, outbidding DraftKings, who were also interested in the sale.
The company’s non-executive chairman of the board, Brett Paton, stated on the sale via a press release;
“The improved proposal delivers PointsBet shareholders a 50 percent or US$75m increase to the acquisition price originally agreed with Fanatics Betting and Gaming. Following the receipt of a non-binding indicative offer for our US Business from DraftKings on 16 June 2023, the PointsBet team entered negotiations with both parties.”
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty. Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times. The offer to “front end” the additional consideration is an element which we regarded as a welcome and significant benefit to our shareholders.”
“Subject to shareholder and regulatory approvals, our US team will have a strong future as part of the Fanatics Betting and Gaming group, and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”
Every online licensed, regulated casino has to pair with an offline physical brick-and-mortar establishment, and for PointsBet, that meant a partnership with Lac Vieux Desert Band of Lake Superior Chippewa Indians in January 2021, and this means Fanatics must now re-affirm this affiliation as part of their move to secure a license to operate in Michigan.
The Athletic reports that Fanatic's move to buy PointsBet will allow them to access as many as 15 states, with New York, New Jersey, Pennsylvania, and Michigan considered the jewels in the sports betting crown.
Fanatics is valued at $31 billion.